Time Out New York is on the block as founder Tony Elliott and his investment partners look to cash out.

Final bids are expected to be in by year-end.

Elliott said he was hoping to fetch up to $40 million for the New York title and its share of sister title Time Out Chicago, according to the Times of London, which broke the story in yesterday’s editions.

Media observers say that selling in the current climate is going to be tough.

TONY has had some years when it eked out a narrow profit, but both titles are believed to be operating in the red in the current fiscal year.

The New York edition has revenues estimated at $25 million a year and will probably lose just under $1 million this year.

Through the Nov. 5 edition, ad pages were down 13 percent compared to a year ago.

Elliott founded the London edition of Time Out in 1968 and didn’t tackle the American market until 13 years ago.

The investment over the years was estimated to be anywhere from $10 million to $30 million, although full financial figures have not been disclosed.

Time Out Group Ltd., the London-based holding company, was said to have a loss of $687,382 on revenue of $33.5 million through the 11 months of the 2006 fiscal year.

Full-year figures for 2007 and 2008 were not disclosed, but the publishing environment has deteriorated rapidly during that time frame.

The TONY ownership has a 50 percent stake in the Chicago edition, with Morningstar founder Joe Mansueto owning the rest.

Elliott said he’d sell his American stake only if he received a respectable offer. DeSilva + Phillips, a New York-based investment firm, is handling the auction.

Alison Tocci, president of Time Out New York told The Post, “It’s not a secret that we’ve been looking for money, we have been for several years. But TONY has finally come around to the idea that it may involve a sale.”